Larry Anderson, once in upper ranks, wins on appeal to get unemployment

Unemployment for Tri-City CEO

“The claims are false, all of them, including the Moonlight tickets, including the cooking of the books, are all false and it’s hurtful and it’s harassment,” Anderson said.

Administrative Law Judge Dorothy Johnson with the Unemployment Insurance Appeals Board sided with Anderson, ruling in his favor on June 10.

The judge wrote that Tri-City “relied largely on alleged statements by the former CFO, none of which were signed under penalty of perjury.”

She also determined district resources were not used to investigate Carlsbad Mayor Matt Hall, nor was Anderson’s distribution of Moonlight theater tickets problematic, based on the evidence presented.

“The employer offered no persuasive evidence that any of the claimant’s conduct was outside his authority as CEO,” Johnson wrote in her decision. “The employer discharged the claimant for reasons other than misconduct connected with his most recent work.”

Anderson, who had led the Oceanside hospital district since January 2009, was placed on paid administrative leave Sept. 4, and was fired by the board on Oct. 17. Tri-City will be on the hook to pay Anderson’s unemployment.

Anderson’s total compensation began at $524,987 in 2009, grew to $856,966 in 2010 and dropped to $778,841 in 2011. It topped $798,800 in 2012, according to the state controller’s public agency pay database.

Tri-City did not provide Anderson’s 2013 compensation when requested this week, so it is unclear what he made in his final year on the job. Unemployment documents show that Tri-City paid him $73,502 the week he was fired, an amount that included paid time off.

Anderson filed a claim this year alleging Tri-City defamed him by releasing the termination memo, among other things.

Anderson also claims he terminated his contract for cause in writing before the board terminated him, so he is eligible for 18 months of severance pay as required by his contract. It’s not clear what effect that separate dispute might have on unemployment, generally not granted to people who resign.

Anderson is seeking an unspecified amount of money in damages for “lost wages and employment benefits, unpaid wages and civil penalties, attorney fees and costs, and emotional distress,” the claim says.

Anderson and Tri-City are in arbitration on the matter.

Merton Bernstein, professor emeritus of Washington University Law School, said a person whose income was high does not necessarily fall outside the purpose of unemployment insurance.

“Somebody with income that high might very well have obligations that most of us might not have,” Bernstein said. “Initially it would seem that people with that high income are not the main concern of the unemployment system, but it’s conceivable that people in that category would need an income substitute for at least the 26 week period that it's commonly available for.”